Unlimited Gift Exclusion for Medical Expenses

By
Los Angeles Estate Planning Attorney
|December 15, 2011

In previous posts we discussed types of payments that will qualify for tax exemptions, such as the unlimited education gift exclusion. Another one of these such unlimited exclusions would be payments that qualify for medical exclusion.

What kinds of payments would qualify as a medical exclusion? These of course would be payments that are made directly to any institution that provides medical care and treatment to an individual. Or even to a company that provides medical insurance to an individual. Expenses made for healthcare are the same as those deductible under income taxes. So, you could pay for someone's surgery or treatments, but also give them a gift of up to $13,000 without any tax consequences. However, important to note that this money must be made payable directly to the hospital, doctor, treatment center, etc. And must NOT be paid to the patient, otherwise it will be considered a taxable gift.

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